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Become a Better Investor Newsletter – 24 May 2025

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Noteworthy this week

  • US inflation expectations through the roof
  • 5%+ UST yields are back
  • Money supply is growing again
  • New ATH for BTC
  • Lego beats luxury

US inflation expectations through the roof: American consumers expect inflation to jump to 7.3% over the next 12 months, the highest reading in 44 years.

5%+ UST yields are back: US 30-year bonds yield more than 5%, not what the highly indebted US government needs.

Money supply is growing again: M2 money supply has expanded at 4.1%. After reaching its deepest contraction in 65 years.

New ATH for BTC: Bitcoin has traded above US$110,000.

Lego beats luxury: Lego has a higher profit margin than LVMH and Ferrari.

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Weekly market performance

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Chart of the week

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Podcasts we listened to this week

The Hundred Year Pivot Ep. 3 – Russell Napier

“Russell lays out a powerful framework for understanding the unwinding of decades-long distortions—rising debt, trade and capital flow asymmetries, and the pivotal role of China in the shifting global balance. As geopolitical alliances realign and governments turn increasingly to capital controls and financial repression, Russell warns that traditional investment strategies may prove dangerously inadequate.”

Listen on Apple or Spotify.

Readings this week

Are Completion Portfolios Effective for Managing Concentrated Stock Risk?

“This study investigates the most effective ways to manage the risk of concentrated stock positions. While the completion portfolio approach to hedging the risk of concentrated stock appears conceptually sound, the empirical evidence shows that  it offers limited practical risk-reduction benefits.”

Read the article.

Book recommendation

Philosophy and Life: Exploring the Great Questions of How to Live by A. C. Grayling

“There is a question everyone has to ask and answer – in fact, has to keep on asking and keep on answering. It is, ‘How should I live my life?’ meaning, ‘What values shall I live by? ‘What sort of person should I be? What shall I aim for?’ The great majority of people do not ask this question, they merely answer it unthinkingly, by adopting conventional views of life and what matters in it…”

Get the book on Audible or Kindle.

Audible is great; have you tried it? If not, click here to get 2 books for free.

Memes of the week

New My Worst Investment Ever episodes

Cash Is Tight, but You Can Still Turn Things Around

Discipline beats loans every time. Borrowing might feel like a lifeline, but it’s a weight around your neck if you don’t fix the root problems.

Access the episode’s show notes and resources

Ep805: Oeystein Kalleklev – Shipping’s Brutal Truth: Adapt or Die

BIO: Oeystein Kalleklev is the outgoing CEO of Flex LNG and Avance Gas. He has prior experience as CFO of Knutsen NYK Offshore Tankers and Umoe Group and Chairman General Partner of MLP KNOT Offshore Partners.

STORY: Oeystein has been part of some terrible investments made by his employers. One invested $150 million to become the biggest shareholder of a mine in Guinea, which was lost due to a bad regime. During the great financial crisis, another invested $300 million into a bioethanol plant in Brazil.

LEARNING: In a dynamic industry like shipping, you must think more about adapting and being tactical rather than strategic.

Access the episode’s show notes and resources

Published on Become a Better Investor this week

In this episode of Enrich Your Future, Andrew and Larry Swedroe discuss Larry’s new book, Enrich Your Future: The Keys to Successful Investing. In this series, they discuss Chapter 32: The Twenty-Dollar Bill.

Listen to Enrich Your Future 32: Trying to Beat the Market Is a Fool’s Errand

Gansu Shangfeng Cement Company Limited (000672 SZ): Profitable Growth rank of 7 was down compared to the prior period’s 5th rank. This is below average performance compared to 760 large Materials companies worldwide.

Read Gansu Shangfeng Cement – World Class Benchmarking

Charoen Pokphand Foods Public Company Limited (CPF TB): Profitable Growth rank of 2 was up compared to the prior period’s 10th rank. This is World Class performance compared to 540 large Cons. Staples companies worldwide.

Read Charoen Pokphand Foods – World Class Benchmarking

Celltrion Incorporated (068270 KS): Profitable Growth rank of 9 was down compared to the prior period’s 7th rank. This is poor performance compared to 350 large Health Care companies worldwide.

Read Celltrion Inc – World Class Benchmarking

Jinan Acetate Chemical Company Limited (4763 TT): Profitable Growth rank of 1 was same compared to the prior period’s 1st rank. This is World Class performance compared to 670 medium Materials companies worldwide.

Read Jinan Acetate Chemical – World Class Benchmarking

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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